General Collections Information

General Definitions

A receivable becomes past due if payment is not received by the initial payment due date.

At ninety days past due, the receivable becomes delinquent. The following procedures will describe the actions that are to be taken for collection of receivables:

A late fee of $50 is assessed to currently enrolled students only who do not pay institutional charges by the due date.

A finance charge of 0.667 percent is assessed per month to non-students. Students will also be assessed a finance charge of 0.667 percent per month for unpaid prior term charges.

Who Pays Collection Costs?

In order to hold individuals, who do not pay all fees and charges owed, responsible to pay costs incurred in the collection of the debt, language must be included on the contract the university has with the customer that gives the customer notice of this fact. This language should include the following:

"In the event of default or the return of a check for payment of said fees and charges, the debtor will be subject to pay a penalty fee, to pay interest at the highest rate allowed by law, and to pay for all reasonable administrative costs, collections costs, and attorney's fees incurred in the collection of funds due the University.

Addresses must be kept current in the university's database in order for the University to send statements in a timely manner. Students, faculty and staff can change their address on the Hokie SPA; others must be changed through the Financial Database Group. Non-receipt of statements is not a valid defense for non-payment; it is the responsibility of the individual who has incurred the debt to see that the debt is discharged ."

Collections Procedures

Any amount owed to the University including, but not limited to, tuition, fees, room, board, loans, notes receivable, and amounts due for goods and services provided is considered a receivable to the University. A receivable becomes past due if payment is not received by the payment due date. At ninety days past due, the receivable becomes delinquent.

For currently enrolled students, the primary collection tool is the placement of a "HOLD" by the Office of the University Bursar on a student's record. This "HOLD" restricts certain student activities such as the ability to add or drop classes, receive grade transcripts, and registration for future academic terms. Once established, the "HOLD" remains in place until the debt is paid in full. Once a student is no longer enrolled, the collection procedures utilized for other "non-student" receivables are implemented. In addition, if you have applied for graduation and have a balance on your student account, your diploma may be held.

Accounts Not Sent to Collections

If the total due on the account is less than $10, the charge is not sent to collection but is transferred to the pre write-off term, 00098. However, based on the professional judgment of the staff, any account may be sent to collection, with the approval of the supervisor of the Collections section.